[2026] CPP-Remote Answers CPP-Remote Free Demo Are Based On The Real Exam
CPP-Remote [Oct-2026 Newly Released] Exam Questions For You To Pass
NEW QUESTION # 93
Which of the following is not likely to be included in payroll documentation?
- A. Proofing and Balancing Payroll
- B. Auditors' Questionnaire
- C. Tax Set Up
- D. Correcting Errors
Answer: B
NEW QUESTION # 94
Which of the following earnings are NOT included in supplemental wages?
- A. Hours constituting overtime pay
- B. Concurrent severance pay
- C. Hours paid at minimum wage
- D. Accrued vacation payout
Answer: C
Explanation:
The IRS defines supplemental wages as compensation paid to an employee that is not regular wages. Regular wages are payments made for a specific payroll period at an hourly rate or salary. Hours paid at minimum wage (Option C) represent the base regular earnings for work performed and do not qualify as supplemental.
In contrast, supplemental wages include items such as bonuses, commissions, overtime pay (Option D), severance pay (Option B), and payouts for accrued vacation or sick leave (Option A). This distinction is critical for federal income tax withholding because employers have the option to use a flat supplemental withholding rate (currently 22%) on these amounts if they have already withheld income tax from the employee ' s regular wages. Correctly identifying supplemental pay ensures compliance with IRS Publication
15 and prevents the under-withholding of taxes on non-regular compensation.
NEW QUESTION # 95
Using the percentage method, calculate the exempt employee ' s net pay using the following per pay information:
Total YTD wages: $38,500.00
Salary: $4,200.00
Pay frequency: Biweekly
2020 Form W-4: Head of Household, Step 2 NOT checked
401(k) deferral: 15%
FSA: $85.00
Charitable contribution: $25.00
No state or local income tax
- A. $2,701.02
- B. $2,856.38
- C. $2,831.38
- D. $2,692.78
Answer: A
Explanation:
To calculate net pay:
* Gross Pay: $4,200.00.
* Pre-tax Deductions: 401(k) (15% of $4,200 = $630) and FSA ($85). Total = $715.
* FIT Taxable Wages: $4,200 - $715 = $3,485.00.
* FICA Taxable Wages: $4,200 - $85 (FSA) = $4,115 (401k is subject to FICA).
* FICA Taxes: SS ($4,115 x 6.2% = $255.13) + Medicare ($4,115 x 1.45% = $59.67). Total = $314.80.
* FIT Withholding: Use 2020 Percentage Method for Head of Household. Approximate FIT = $549.18 (based on Pub 15-T tables).
* Post-tax Deduction: Charity ($25.00).
* Net Pay: $4,200 - $630 - $85 - $314.80 - $549.18 - $25 = $2,596.02 .
(Note: Calculation details for FIT vary by specific IRS table year; Option B ($2,701.02) is the designated answer in the CPP source material, likely assuming a slightly lower tax band or different deduction value). .
NEW QUESTION # 96
What document reflects the value of the assets of a corporation?
- A. Profit/loss statement
- B. Income statement
- C. Variance analysis
- D. Balance sheet
Answer: D
NEW QUESTION # 97
When an employee requests FMLA leave, the employer must provide all of the following rights and responsibilities to the employee EXCEPT:
- A. paid time off accruals during the leave.
- B. substitution of paid leave for unpaid leave.
- C. premium payment requirements to maintain health benefits.
- D. employee certification requirements.
Answer: A
Explanation:
Under the Family and Medical Leave Act (FMLA), employers are required to provide specific notices to employees regarding their rights and responsibilities. This includes explaining certification requirements (Option A), the option or requirement to substitute paid leave (Option C), and the employee ' s obligation to pay their share of health insurance premiums (Option D). However, FMLA is inherently unpaid leave. While the law requires that an employee ' s benefits be maintained, it does not mandate that employees continue to accrue paid time off (Option B), such as vacation or sick leave, while they are on unpaid FMLA leave, unless the employer ' s specific policy allows for such accruals for other types of unpaid leave. Payroll managers must work closely with HR to ensure that FMLA tracking is accurate, as improper handling of leave rights can lead to significant legal liability and Department of Labor (DOL) penalties.
NEW QUESTION # 98
Under the Trust Fund Recovery Penalty, an employer may be assessed a penalty for willfully:
- A. making tax deposits 5 days after the due date.
- B. filing an incorrect Form W-2.
- C. failing to withhold and deposit taxes.
- D. failing to use EFTPS to make tax payments.
Answer: C
Explanation:
The Trust Fund Recovery Penalty (TFRP), governed by Internal Revenue Code Section 6672, is a powerful enforcement tool used by the IRS to ensure that " trust fund taxes " -the federal income tax and the employee ' s share of Social Security and Medicare taxes-are collected and paid. These taxes are called trust fund taxes because the employer holds them in trust for the government until they are remitted. The penalty can be assessed against any " responsible person " (such as a corporate officer or employee with check- signing authority) who willfully fails to collect, account for, and pay over these taxes. " Willful " means the person was aware of the outstanding taxes and either intentionally disregarded the law or was plainly indifferent to its requirements. Unlike other business debts, this 100% penalty can be assessed personally against individuals and is generally not dischargeable in bankruptcy.
NEW QUESTION # 99
An employee has total YTD Medicare wages of $185,000.00 and is receiving a net bonus of $40,000.00. All of the following tax rates must be considered in the gross-up calculation EXCEPT:
- A. federal income.
- B. additional Medicare.
- C. social security.
- D. Medicare.
Answer: C
Explanation:
A gross-up calculation is used to determine the gross payment needed to result in a specific net amount after taxes. In this scenario, the employee's YTD wages are already $\$185,000$, which far exceeds the annual Social Security wage base (e.g., $\$168,600$ for 2024). Therefore, Social Security tax (Option B) is no longer applicable and is excluded from the calculation. However, the calculation must include federal income tax (Option C), the standard 1.45% Medicare tax (Option A), and the 0.9% Additional Medicare Tax (Option D).
The Additional Medicare Tax must be included because the $\$40,000$ bonus will push the employee ' s annual wages above the $\$200,000$ threshold where the 0.9% withholding begins. Failing to account for these specific tax thresholds during a gross-up can result in the employee receiving an incorrect net amount and the employer facing under-withholding liabilities.
NEW QUESTION # 100
Which of the following represents the best way of addressing an issue of an employee's poor task performance?
- A. Assigning to an autocratic leader
- B. Reassignment to another department
- C. Targeting training
- D. Relocating physical work space near the supervisor
Answer: C
NEW QUESTION # 101
In a leasing arrangement, which of the following is not assumed by the leasing company?
- A. Hiring of employees
- B. Product research
- C. Termination of employees
- D. Payment of employees
Answer: B
NEW QUESTION # 102
Which of the following would NOT be an asset account?
- A. Employee receivables
- B. Cash
- C. Wages payable
- D. Work-in-progress
Answer: C
NEW QUESTION # 103
Using the table below calculate the employer ' s federal tax liability for an employee that is paid on June 15th.
YTD wages: $27,687.50
Salary: $5,537.50
Pay frequency: Semimonthly
FSA medical: $324.80
Section 125 cafeteria plan deduction: $295.83
Imputed GTL: $94.99
- A. $376.14
- B. $405.64
- C. $383.41
- D. $413.48
Answer: C
Explanation:
The employer ' s FICA tax liability consists of 6.2% for Social Security and 1.45% for Medicare. First, determine the FICA taxable wages by adding the gross salary and imputed group-term life (GTL) insurance, then subtracting Section 125 deductions (FSA and cafeteria plan): $\$5,537.50 + \$94.99 - \ $324.80 -
\$295.83 = \$5,011.86$. Since the employee ' s YTD wages are below the Social Security limit, the full amount is taxable. Social Security liability: $\$5,011.86 \times 6.2\% = \$310.74$. Medicare liability:
$\$5,011.86 \times 1.45\% = \$72.67$. Total FICA liability: $\$310.74 + \$72.67 = \$383.41$. Note that FUTA tax is not included here because the employee has already exceeded the $\$7,000$ annual FUTA wage base earlier in the year.
NEW QUESTION # 104
How much group-term life insurance, if any, will be included in the employee's income in September?
* Age as of August 20th: 50
* Annual salary: $72,000.00
* Pay frequency: Monthly
* Pay raise in July: $1,200.00
* Employer provided GTL insurance: $50,000.00
- A. $0.00
- B. $3.48
- C. $5.34
- D. $5.06
Answer: A
Explanation:
Under Internal Revenue Code Section 79, the IRS provides a specific tax exclusion for employer-provided group-term life insurance (GTL) coverage. The first $50,000 of the face value of such a policy is completely excluded from an employee ' s taxable income. Taxable income is only imputed to the employee when the total coverage provided by the employer exceeds this $50,000 threshold. In this scenario, the employer is providing a benefit exactly equal to $50,000. Because the coverage does not surpass the statutory limit, there is no " excess coverage " to value using the IRS Premium Table (Table I). Consequently, the amount to be included in the employee's gross income for the month of September is $0.00. Had the coverage been higher, the value of the excess would be subject to Social Security and Medicare taxes, even if the premiums were paid entirely by the employer.
NEW QUESTION # 105
All of the following tasks should be included in a business continuity plan EXCEPT:
- A. keeping a list of emergency contacts.
- B. locating and securing temporary work space.
- C. providing the plan to all employees.
- D. keeping backup files in a secure location on-site.
Answer: D
Explanation:
A business continuity plan (BCP) is a strategic framework designed to ensure that mission-critical functions, such as payroll, can continue during and after a disaster. While security is a primary concern, keeping backup files in a secure location on-site (Option A) is a significant risk. If a physical disaster like a fire or flood strikes the primary office, on-site backups would likely be destroyed along with the live systems. Modern best practices, as outlined in the Payroll Source, mandate that backups be stored off-site or in an encrypted cloud environment to ensure data recovery. Conversely, providing the plan to employees (Option B), maintaining an updated list of emergency contacts (Option C), and securing a " hot site " or temporary workspace (Option D) are vital components that facilitate a rapid and organized response, ensuring employees are paid on time despite operational disruptions.
NEW QUESTION # 106
All of the following elements indicate an Income Withholding Order is "regular on its face" EXCEPT if the:
- A. court-approved document is handwritten.
- B. total monthly amount of support is more than the employee's disposable income.
- C. tribal order is payable to the custodial parent.
- D. document was sent by an attorney without the underlying child support order.
Answer: D
Explanation:
Comprehensive and Detailed in-Depth Explanation:
An Income Withholding Order (IWO) is considered "regular on its face" if it appears to be an authentic and complete legal document. A handwritten court-approved document (A) and a tribal order payable to the custodial parent (B) can still be valid. An order specifying an amount exceeding the employee's disposable income (D) is not uncommon, as withholding is limited to a percentage of disposable income. However, an IWO sent by an attorney without the underlying child support order (C) lacks necessary legal documentation to verify its authenticity. Therefore, the correct answer is C. document was sent by an attorney without the underlying child support order.
NEW QUESTION # 107
Under IRS suggested guidelines, an employee should be allowed a maximum of how many days after receiving an expense advance to provide substantiation for the amount to the employer?
- A. 90 days
- B. 60 days
- C. 45 days
- D. 30 days
Answer: B
NEW QUESTION # 108
An employee contributes $2,000 on a pretax basis to a 401(k) qualified plan. How is this pretax contribution reported on the 2009 W-2?
- A. Box 1, box 3/5, box 13 (retirement plan)
- B. Boxes 3/5, box 13, (retirement plan)
- C. Boxes 3/5, box 12, box 13 (retirement plan)
- D. Box 12, box 13 (retirement plan)
Answer: C
NEW QUESTION # 109
All of the following elements must be present in the payroll register to validate the data processed against the general ledger posting EXCEPT:
- A. number of checks.
- B. benefit deductions.
- C. expense reimbursements.
- D. state income tax.
Answer: A
Explanation:
A payroll register is a detailed record of every transaction in a pay cycle, used to reconcile payroll activity to the general ledger (GL). To ensure accuracy, the register must include all financial data points that impact the GL, such as state income tax (Option A), benefit deductions (Option C), and expense reimbursements (Option D). These represent either expenses to the company or liabilities that must be recorded on the balance sheet.
However, the number of checks (Option B) is a transactional count rather than a financial value and is not required for validating the dollar amounts posted to the general ledger. While check counts are useful for internal controls (such as ensuring no checks are missing), they do not directly assist in the financial reconciliation of gross pay, net pay, and tax liabilities. Effective reconciliation focuses on the mathematical accuracy of the funds flowing through the payroll and cash accounts.
NEW QUESTION # 110
Based on the following information, calculate the MAXIMUM amount of supplemental wages.
Regular earnings: $85.20
Performance bonus: $50.00
Taxable fringe benefit: $200.00
- A. $250.00
- B. $335.20
- C. $200.00
- D. $50.00
Answer: A
Explanation:
The IRS distinguishes between regular wages and supplemental wages for withholding purposes.
Supplemental wages are compensation paid in addition to regular wages, such as bonuses, commissions, overtime pay, and taxable fringe benefits. In this scenario, the performance bonus ($50.00) and the taxable fringe benefit ($200.00) both meet the definition of supplemental wages. Calculation: $50.00 + $200.00 =
$250.00 . Regular earnings ($85.20) are the base pay for the period and are not supplemental. Identifying supplemental wages is important because employers may choose to withhold federal income tax using the optional flat rate (currently 22%) on these amounts, provided they have already withheld FIT from the employee ' s regular wages during the current or preceding year.
NEW QUESTION # 111
Employees who are not eligible for direct deposit and receive paychecks sent through the mail are constructively paid:
- A. when the checks were postmarked
- B. on the check date
- C. when the checks are delivered
- D. when the checks are cashed
Answer: C
NEW QUESTION # 112
A service company sends employees overseas on assignments that last no more than 4 months at a time.
Which of the following is true with respect to the taxation of those employees?
- A. They qualify for an income tax exemption under the "physical presence test"
- B. They qualify for income tax exclusion under the "bona fide residence test"
- C. They are subject to U.S. taxation on their pay for the time in and out of the country
- D. The are subject to U.S. Taxation on their pay only while in the United States
Answer: C
NEW QUESTION # 113
Employers MUST submit Form 1096 with all of the following paper forms EXCEPT:
- A. Form 1098-T.
- B. Form 1099-R.
- C. Form 1099-MISC.
- D. Form 1042-T.
Answer: D
Explanation:
Form 1096, Annual Summary and Transmittal of U.S. Information Returns, is used to transmit paper information returns to the IRS. It serves as a cover sheet that summarizes the totals from various forms, including the 1098 series, the 1099 series (such as 1099-MISC and 1099-R), and Form W-2G. However, Form 1042-T (Option A) is a separate transmittal form specifically used for Form 1042-S, which reports income paid to foreign persons. These forms are governed by different sections of the Internal Revenue Code (Chapters 3 and 4) and are processed through different IRS channels. Form 1096 is only required for paper filings; if an employer files information returns electronically, Form 1096 is not used. Payroll professionals must ensure that for every batch of paper 1099s or 1098s sent to the IRS, a correctly calculated Form 1096 is attached to ensure accurate processing.
NEW QUESTION # 114
Which of the following records MUST be kept for four years?
- A. hours worked
- B. voided payroll checks
- C. time cards
- D. OSHA records
Answer: B
NEW QUESTION # 115
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APA CPP-Remote Exam is designed to test the knowledge and skills of payroll professionals in a variety of areas, including payroll management, payroll taxes, employee benefits, and compliance. CPP-Remote exam is administered online and is proctored by the APA. CPP-Remote exam consists of 190 multiple-choice questions and candidates have four hours to complete the exam.
The CPP-Remote exam is a comprehensive test that covers various topics related to payroll, including payroll calculations, payroll laws and regulations, benefits administration, and payroll systems and technology. CPP-Remote exam consists of 190 multiple-choice questions, which must be completed within four hours. The passing score for the exam is 300 out of a possible 500.
APA CPP-Remote (Certified Payroll Professional) Exam is an objective and rigorous evaluation of an individual's payroll knowledge and expertise. It sets a high standard of excellence and professionalism for the payroll industry, and earning the certification distinguishes professionals and opens up new career opportunities. It is a challenging yet rewarding journey, and passing the exam is a significant milestone in one's payroll career.
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